Solana Slashing: What Delegators Need to Know

Solana is preparing to introduce programmatic slashing, a shift that will materially impact delegators and validators alike. Until now, the network has avoided slashing, but with over $11B in DeFi TVL, security incentives are tightening. Three Solana Improvement Documents (SIMDs) mark the path: SIMD-0180 re-keys the leader schedule to vote accounts for accurate accountability, SIMD-0204 introduces an on-chain logger to verify slashable offences, and SIMD-0212 outlines the formula for calculating and enforcing penalties. Full activation is unlikely before Q2 2026, following the Alpenglow consensus upgrade.

For delegators, the implications are clear: validator selection, diversification, and robust risk frameworks become essential. Minor offences will result in little or no penalties, but correlated or severe violations can lead to full slashing of delegated stake. Liquid Staking Tokens (LSTs) face systemic risk if underlying assets are burned. This evolution underscores why institutional stakers should prioritize enterprise-grade operators with insurance, monitoring, and proven performance.
‍

Disclaimer: Twinstake does not provide staking services to retail customers. This briefing note is not intended as a promotion, offer, invitation or solicitation for the purchase or sale of any investment, nor is it intended to give rise to any other legal relations whatsoever and must not be relied upon for the purposes of any investment decision.  It does not constitute financial, legal, or investment advice. If you do not have the relevant professional experience in matters relating to crypto asset investments, you should not consider this briefing note to be directed at you. This briefing note and the information in it is not directed at, or intended to be made available to, retail customers.  It is directed only at persons who are professional investors (for the purposes of the Alternative Investment Fund Managers Directive (2011/61/EU) (known as ‘AIFMD’); professional clients or eligible counterparties for the purposes of the Markets in Financial Instruments Directive (Directive 2004/39/EC) (known as ‘MiFID’); if you are in the UK, to “Investment Professionals” or “High Net Worth Companies” as defined in s.19 and s.49 respectively of the Financial Promotions Order, or as otherwise defined under applicable local regulations and at whom this briefing note and the information in it may lawfully be directed in any relevant jurisdiction.

It is critical to understand that staking APRs can fluctuate due to various factors, including but not limited to: market volatility (changes and in market conditions which can materially impact staking rewards), network changes (modifications, upgrades, or forks in the blockchain network may affect staking returns), inflation rates (certain digital assets incorporate inflation mechanisms that can influence staking rewards over time), validator performance (staking rewards depend on the performance and reliability of the validators or nodes to which assets are staked. Suboptimal performance or downtime can diminish returns) and protocol adjustments (blockchain protocols may adjust staking reward rates, which can impact projected APRs, regulatory changes (legislative or regulatory developments can affect the staking ecosystem and associated rewards).

Historical performance does not guarantee future outcomes. The provided APR projections should not be construed as a guarantee of future earnings. Actual staking rewards will vary. Engaging in staking digital assets involves inherent risks, including the potential loss of the principal amount staked. Due diligence and comprehensive risk assessment are essential before participating in staking activities.

Twinstake shall have no liability for any loss or damage that may arise directly or indirectly from the use of, reliance, or for any errors or omissions in the information provided in these projections.

By participating in staking, you acknowledge that you have read, understood, and accepted this disclaimer.

‍